PetroChina profit plunges 78pc on weak oil price
to 6.5 per cent this year and 6.2 per cent next year.
That augurs poorly for Chinese banks, which have been struggling to contain loan defaults and narrower margins amid the country’s economic slowdown in recent years. Tighter regulations on mortgage lending, off-balance sheet wealth management products and some cross-border financial services have also SHANGHAI: State-owned Chinese energy giant PetroChina yesterday announced it slumped to a record-low profit for last year as global oil price weakness slashed earnings by 78 per cent.
Net profit fell to 7.86 billion yuan (RM5 billion), the Beijingbased company said in a statement to the Hong Kong stock exchange, where it lists shares.
Bloomberg News reported the profit figure was a record-low for PetroChina, the country’s biggest oil producer.
Citing a “complicated and severe domestic and international economic environment”, PetroChina blamed the result on depressed prices of crude oil and natural gas and a “severe” oversupply of refined products due to slower demand as China’s economic growth moderates.
PetroChina said it was cautiously optimistic this year, if the global economy could recover.
“...The international oil price is likely to rebound, but may still involve relatively great uncertainty,” it said in a statement said.
Tian Miao, an analyst at North Square Blue Oak Ltd, told Bloomberg News profit was “badly hit by the oil price crash last year”. AFP dragged on profits.
Construction Bank cut operating costs by 12 per cent from a year earlier and saw its NPL ratio fall to 1.52 per cent, from 1.58 per cent, according to a Hong Kong exchange filing on Wednesday. Agricultural Bank slashed costs by 13 per cent and its bad-loan ratio dropped to 2.37 per cent from 2.39 per cent, it said on Tuesday. Bloomberg
Agricultural Bank slashed costs by 13pc and its badloan ratio dropped to 2.37 per cent last year from 2.39 per cent before.